Tax increases for residential Grand Forks doesn't mean increased payouts

By Mona Mattei

In passing their tax bylaw this week, Grand Forks city council honoured their decision to reduce major industry and business tax burdens and shift the weight onto residential taxes. Luckily for local homeowners, the provincial government has increased the annual homeowner grant so taxes payable to the city will actually decrease for the average household.

 

Chief Financial Officer Cecile Arnott presented council with three options for taxation for 2011 / 12 at their meeting on Monday, May 9. The third option, recommended by Arnott, was acted on by council.

 

This option reflects a tax shift of $55,000 from the major and minor industry classes and $75,000 from commercial business class. Although the taxation has decreased for these classes, Arnott cautioned business owners that their average assessment has gone up so they may not see the cost decreasing as much as might be expected.

 

“We’ve seen so many communities become dependent and addicted to that revenue (from businesses and industry),” said Mayor Brian Taylor, “and then when there are major changes they can’t run their own city. I think our purpose with these moves has been to keep control of our ability to run the store.”

 

In 2011 the average home in Grand Forks was assessed at $205,960, an increase of $3,916 from 2010. As a result of council’s choice for taxation, the total taxes based on an average home will be $1,083.82, an overall decrease of $22.89. Arnott indicated that the homeowner grants have increased by $200 to help balance tax impacts for this year.

 

“I think its important for the public to understand that only the residential (properties) receive the homeowner grant, and with it going up its not impacting the out of pocket by much if anything,” commented Councillor Christine Thompson. “It’s also to assist our business because a lot of them are hurting with the downturn in the economy as well. We’ve heard them and tried to respond to their concerns and needs.”

 

For residential landowners the municipal property tax rate will be $3.3184 per $1,000 of assessed value; major industry - $38.1974 per $1,000; and business - $9.1323 per $1,000. This is just the municipal portion of the tax base and there are other rates including school, regional district, policing, hospital, etc. that impact the totals for all property owners.

 

Regional district tax requisitions and the regional hospital taxes have both increased on all classes of properties as much as a total of 2.5 percent, explained Arnott.

 

Council further voted to increase the parcel tax rate for lots with improvements by a flat $5.00.

 

Arnott also presented the first quarter financial statements for the city. Arnott stated that the city will be within budget according to the results provided there are no unusual and unpredicted events. The electrical utility is forecasted to provide $410,900 towards the operations of the city in 2011, and Arnott reminded council that they still need to deal with the upcoming challenges for infrastructure.

 

At last council meeting, April 26, the city’s auditor also confirmed that 2010 finances were in a positive position in a presentation of their annual statements, and he has confidence in their accounting processes.

The first three readings passed at Monday night’s meeting and the final reading for the tax bylaws was done on Wednesday, May 11 at city hall.